Brexit jitters dent hopes of a rise in London house sales
Sales activity in London’s subdued housing market is expected to slip deeper into negative territory over the coming months, according to a closely-followed industry survey released this morning.
Brexit uncertainty has caused growing hesitation among buyers and sellers, the Royal Institute of Chartered Surveyors (Rics) has warned, with the outlook for property sales weakening in almost all parts of the UK over the past two months.
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Near term sales expectations in the capital have fallen from a net balance of -15 per cent to -41 per cent, marking the steepest drop since November last year.
“Uncertainty is a theme that respondents continue to highlight as a negative influence on sentiment in survey after survey,” said Simon Rubinsohn, Rics chief economist.
“That said, the key Rics activity indicators have remained relatively resilient until now, pointing to only a modest dip in sales transactions rather than anything more severe.”
The net balance of surveyors reporting that house prices have risen over the last three months to -4 increased in August, rising from -9 in July and staying above the consensus -10.
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Capital Economics said: “Having seen a small improvement across June and July, housing demand lost all upward momentum in August. Looking ahead, given the high level of house prices and ongoing political uncertainty, a recovery in house price growth or transactions is unlikely until at least next year.”
Jeremy Leaf, north London estate agent and a former Rics residential chairman, added: “These figures are disappointing bearing in mind their historic accuracy but they are not a lot different from what one would expect in August, particularly in view of continuing political uncertainty. On the ground, we have seen plenty of caution and many buyers and sellers sitting on their hands. However, longer-term buyers of smaller houses have been looking beyond Brexit and taking on view on likely price movements.”